Molina to reduce real estate holdings by two-thirds following remote work shift

Molina Healthcare plans to reduce its real estate footprint by two-thirds in a move toward permanent remote work, CEO Joseph Zubretsky told investors during the company’s second quarter earnings call July 28.

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By ending the leases on about two million square feet of office space across the country, the company said it expects substantial general and administrative cost savings.

Molina is not the first major payer this year to slash real estate holdings to better support hybrid and remote work styles. Centene said June 17 it would reduce its real estate footprint by 65 percent, a move that is expected to save the company up to $200 million annually.

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